The dairy sector is the main branch of agricultural production which constitutes source of income of many farms in Poland and in Lithuania. Accession of both countries to the structures of the European Union has radically changed the functioning of the entire dairy sector which faced changes and the necessity to comply with the new free market circumstances. The first aim of this article is to present the overview of the dairy industry in Poland and in Lithuania after the accession to the EU. The second aim is to focus on the economic situation of milk producers. The summary clearly shows the immense progress in complying with the EU requirements, although the gap between these two markets and the biggest EU milk producers is still significant. The economic results of analysed dairy farms in Poland and in Lithuania confirmed the improved performance of productivity since 2004. Relatively small (about 50%) share of subsidies in farm net income makes milk production less dependent on such type of support.
Key words: Dairy farms; milk production; economic results; Central and Eastern Europe.
JEL classification: O13, O57, Q19
Augustyńska-Grzymek, I.; Czułowska, M.; Skarżyńska, A.; Żekało, M.; Stalgiene. A. 2015. The view of dairy sector and the economic situation of milk producers in Poland and in Lithuania after accession to the EU. In The Eleventh International Conference:“Challenges of Europe: Growth, competitiveness and inequality”, University of Split Faculty of Economics, Croatia, May 27-29, 2015. 11:307-323. ISSN 1849-25441(online), ISSN 1847-4497 (CD-ROM). [Straipsnis konferencijos medžiagoje ISI Proceedings].
The Eleventh International Conference:“Challenges of Europe: Growth, competitiveness and inequality"
